An article in the Wall Street Journal stated that at the beginning of May 2017, inventories of pickup trucks were “touching 97 days’ supply as of the beginning of May, or a 12% increase in actual...

An article in the Wall Street Journal stated that at the beginning of May 2017, inventories of pickup trucks were

“touching 97 days’ supply as of the beginning of May, or a 12%

increase in actual vehicles on dealer lots compared with

the prior year. . . . That number is far above the industry

norm for inventory.” Why might U.S. automakers find

that their inventories of pickup trucks are unexpectedly

rising? How are these automakers likely to react to the

increase in inventories?

Source: John D. Stoll and Adrienne Roberts, “As GM Adjusts to

Changing Auto Market, Its Sales Slide Behind Ford’s,” Wall Street Journal,

June 1, 2017.